Occupy the SEC: one year later

All eyes are on the Occupy Wall Street movement this morning as protesters gathered from 7am in front of the NYSE to disrupt morning activities in Manhattan’s Financial District. The event, dubbed S17 (September 17) will involve a ‘people’s wall’ outside the NYSE to not only reunite members of the controversial group but to remind bankers, executives and other high-powered employees about the growing income disparity and unfair business practices that continues to exist.

The three-day event kicked off on September 15 with protesters educating the public about the 99 percenters and a scheduled concert that occurred yesterday.

It seems only yesterday that OWS made its debut in Zuccotti Park, drawing worldwide attention. From pitching tents in Manhattan to fanning out across the city’s subway station, the protesters made their presence felt. One year later, they’re still going strong.

But in the background another quieter, less rambunctious rebellion is taking place inside the nation’s regulatory system. October 15 marks the one-year anniversary of Occupy the SEC (OSEC) and many legal professionals are still baffled about the motive of this organization. An offshoot of the OWS, OSEC is known for calling on regulatory bodies such as the commission and the Federal Reserve to promote tighter regulation in the financial services industry.

‘We plan on supporting OWS today but will not be actively involved in the protests,’ says Elizabeth Friedrich, a member of OSEC.

The organization consists of former lawyers, disgruntled employees and Wall Street executives. Unlike OWS, OSEC is working behind closed doors to carefully deconstruct traditional banking practices and legal decisions that allow banks to reap in big benefits at consumers’ expense.

‘If you are a financial institution, you need to focus on the customers and not shareholders,’ adds Friedrich. ‘At the same time, if your shareholders are more important, you shouldn’t do retail banking. The most effective way to get your point across is to work within the system to make changes to it.’

With OWS causing chaos in the financial district, now many are wondering: how will OSEC usher in its first birthday?

While there have been some changes on the regulatory front, Friedrich says corporate governance remains thin and most boardrooms are not paying attention to this issue.

She feels policy makers should shift their attention to board governance. Corruption and fraud are among the greatest obstacles many companies face and OSEC believes it is up to the members of the boardroom to start setting the tone at the top. ‘The most effective way to get our voices heard is to understand and work within the regulatory system,’ she adds.  

In June, the financial interest lobbying group held a rally between Liberty Plaza and the SEC, urging members of the agency to investigate JPMorgan CEO Jamie Dimon for his role in the chief investment office fiasco. Earlier this year, it also held a march in New York as it unveiled a 325-page comment letter to the SEC pushing for the commission to enhance the Volcker Rule, a subsection of Dodd-Frank that monitors risky trading practices by top investment firms.